TECHNOLOGY

Uber prices IPO conservatively to raise $8.1 bln: Sources

Through the move, Uber adopted a risk-averse stance toward the most high-profile US listing since Facebook Inc seven years ago. (Supplied)

Uber Technologies Inc priced its initial public offering on Thursday at the low end of its targeted range, raising $8.1 billion, two people familiar with the matter said.

Through the move, Uber adopted a risk-averse stance toward the most high-profile US listing since Facebook Inc seven years ago.

Uber’s IPO comes against a backdrop of turbulent financial markets and the plunging share price of its US rival Lyft Inc.

Uber is eager to avoid a repeat of what happened to Lyft’s stock, which priced strongly in the company’s late-March IPO and opened trading strongly, but has been falling mostly since.

Lyft’s stock slumped nearly 11 percent on Wednesday to a record closing low of $52.91, well below the $72 per share IPO price, after the ride-hailing company reported a $1.1 billion quarterly loss.

Uber, the world’s largest ride-hailing company, is aiming for a valuation of between $80.5 billion and $91.5 billion in the IPO. That is as much as one-third below what the startup’s insiders had hoped for last year, a sign of its more cautious approach in the wake of Lyft’s struggles.

Uber priced its IPO at $45 per share, the people familiar with the matter said on Thursday, toward the bottom end of its $44-$50 per share price range. The IPO values Uber at around $82.4 billion.

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Last Update: Friday, 10 May 2019 KSA 01:33 - GMT 22:33
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